How Companies Benefit From Enterprise Resource Planning Software

In the 20 years since Enterprise Resource Planning (ERP) solutions first became popular, every Tier 1 company in the world has implemented the technology. In fact, most Tier 2 companies are ERP users as well. The value proposition of ERP is well documented.

Today, streamlined versions of the popular ERP systems, as well as many new solutions are focused on Tier 3 companies with less expensive solutions that provide similar benefits without the huge implementation and licensing costs paid by early adopters. For small-to-medium-sized businesses (SMBs) considering an ERP solution, the cost justification may not be as obvious, but if the right software for their needs is selected and an implementation plan developed that manages costs, a significant short-term ROI can be had.

Consider the following benefits that typically accrue from the implementation of an ERP solution to determine whether your organization is ready to take that big step.

A Single Integrated System

Companies that are managing their operations using disparate business IT systems will see immediate cost and productivity gains by implementing replacing those systems with a single integrated ERP solution. ERP doesn’t simply replace existing functionality with new and improved versions; it leverages those functions to enable new capability. Integral to the value proposition is the improved access to and sharing of information. Essentially, it is the advantage of a single, centralized database versus multiple databases of disparate systems. Because information does not have to be exported to other applications, access can occur in real time to enable faster and more informed decision making.

Greater Productivity from a Uniform Process

With an ERP solution, many of the daily tasks become simpler and can be executed faster. Redundant data entry, once common with disparate systems, is eliminated, which minimizes errors. Rather than learning multiple systems, users enjoy a standard interface for all functionality so adoption is faster and users become productive sooner.

Increased Customer Satisfaction

When properly configured, ERP can improve your organization’s response to customers, which increase satisfaction and builds loyalty. Dashboards enable a single view into every aspect of the customer relationship. Orders can be monitored by every member of the account team to ensure products and services are delivered as specified and when requested.

Visibility into inventory status and replenishment cycles allow managers to schedule product availability without increasing inventory costs or stagnant stock; you can have fewer overstocks, and yet, still not run out of product or delay shipments. After shipment, ERP enables better tracking of shipments, prompt generation of invoices, and more accurate payment processing. When the customer wants to know the status of their account, all the information you need is available in seconds.

Better Business Planning